Friday, January 29, 2010

GDP RIPS MARKET

Sorry ...I can't resist those cheap headlines. Don't be too deluded by the noise as mentioned yesterday. Continue to pay attention to the dollar move. 81 still should get hit.

AUY and many of the miners are nearing tradable bottoms. I have a heavy core position now. May take a hit but that is ok...still have cash to trade and buy super heavy if they correct to the 81 on the dollar.

Joe is still heavy cash and gap trading.....smartest move so far.

Oil still has downside room and DTO is probably a good play ....just remember the easy money was made on DTO when oil was 84. Now you must play very small.

Junior miners are murdered.....VGZ..

Market will give you gaps so be aware and play the miners on them.gl...

23 comments:

  1. Dollar index is over 79 now just as we discussed.
    Covered my PBR short yesterday for nice gains.

    palmer

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  2. Another good day for EUO ( short Euro), as I mentioned yesterday, as long as dollar strength continues EUO will go up. Gold is testing first resistance of 1075.

    palmer

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  3. For those of you who want to buy and hold for a while, AUY is starting to get attractive, it has gone down from high of 14 to low of 10 and starting to build resistance around 10.

    palmer

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  4. I meant support around 10 for AUY.

    palmer

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  5. Temo,

    The best gift market can give you this yr is IF Gold drops to 970/980 which means AUY around 8.50. That would be a real gift.

    palmer

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  6. Did anyone else see this and do you guys think this could be true? TexasBlondie
    http://beforeitsnews.com/story/13989/Head_Of_Davos_Security_Suicided_As_Global_Banking_Collapse_Nears.html

    Markus Reinhardt, 61, had headed the police force in the Swiss canton of Graubünden and protected the Davos summit since 1984 before his death on Tuesday.FSB reports circulating in the Kremlin today are stating that the Swiss Police Commander heading security at the World Economic Forum in Switzerland, Markus Reinhardt, was “suicided” after his discovering that the Davos summit was planning for the “final collapse” of the Global Banking system in preparation for Total War.

    Upon Reinhardt’s retrieval of the “sensitive conversations” picked up his new listening system, and his presumed listening to them, he was then “suicided” by two bullets to the back of his head and all of the recordings he had made were “disappeared”.

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  7. Well, that CAT entry did not present itself, have to play the previous gap again. This is just a choppy news day with short covering. Sidestepping it unless I get better signals. Interesting to see how the back half starts to play out. Algos are kicking in a lot to sucker shorts here too, nasty environment. Palmer, agree that picking a AUY bottom here would be sweet. - Analyze.

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  8. Analyze,

    Look at EUO and what it has done since dollar bottomed around 74. As long as dollar strength continues EUO will keep going higher.

    palmer

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  9. Palmer, EUO looks like a beast, next 5 min entry I am going to hit that and let it work for awhile. Good one, thanks. - Analyze.

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  10. All, if you think dollar is now in up trend as I do...you should take a look at SMN....I'm in this one with a huge position, along with ZSL(2nd largest position) EOU does look good...but I think you'll really clean up with SMN. (I'm shorting FCX, AA, PCU...POT...MOS...have calls on SMN(Apr12's in @.37) Holding shares in TZA(3rd largest position),SRS and TYP. Anyway you guys might want to check these out. I'm in most of these from the lows and plan on holding for awhile. TexasBlondie

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  11. Analyze,

    January 26th, one of the comments I made was:
    Analyze,

    PAL 50dma is 3.40
    SWC 50dma is 10.12

    So far 11.50 for SWC and 3.88 for PAL in the down side has held which I believed they would for today to play gaps, I like to see those two test the 50 DMA next couple of weeks.
    ------------------------------------

    Look what happened today when SWC hit exactly 10.12, I gobbled it and just dumped it at 10.30. SWC gaps are beautiful.

    palmer

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  12. Excellent Palmer. Wash, rince, repeat. I'm watching EUO...TexasBlondie, I like those choices just not the entry point today, but I will be hitting those if I can get the right TA signals on them. Still watching that miserable pos CAT too, it is set up to retest the gap at 54. X may have an entry, it will break either way in a few minutes. - Analyze.

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  13. Texas, you must be happy with those shorts today, I wish I had had that entry earlier like you did. Nice swing in X. I should have had AMZN and AAPL on my watchlist today, completely forgot about them, check out them out...ouch. - Analyze.

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  14. Misjudged CAT, it didn't bite as expected for the gap test, and just went to a slow bleed, not good enough setup for puts. It did distract me from other entries, so it is on my revenge list now. - Analyze.

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  15. Just got back from picking up my wife at the airport. Doesnt look like I missed much.

    Sure looks like the dollar wants higher. 81 is probably the target.

    Palmer I am waiting to add to my physical gold at anything under 1030 sub 1000 would be even better. In the meantime I will buy dips on the jr miners.

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  16. I like to see AUY get hammered even more, this is nice, the cheaper the better. Kli & Red are going to get their wish of seeing miners bloodbath.

    palmer

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  17. Off Kenny's blog: OMG, I AM GETTING SICK OF MOVING THE LABELS.

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  18. http://www.rense.com/general89/battle.htm
    This ia a must read! Tittle...Battle Of The Titans, JP Morgan Vs GS...or why the market is down 7 days in a row....geez, I hope this is correct about JPM...comments anyone? TexBlondie

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  19. TB Good read. I tend to agree with Max Keisers point of view.

    I think most agree Geithner is toast but then the battle will be between Volcker and Summers. The scale will tip with Geithners replacement.

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  20. Kli,

    You sure that article is just a theory, heheeeee!
    from TB's link:

    "What I see as a possibility is that next week, if the bankers on Wall Street decide they don't want to be reformed in any way, they simply set the high frequency trading algorithm to sell, creating a huge negative bias for the direction of stocks. And they'll basically crash the market, and it will be a standoff. The market was down three days in a row, which it hasn't been since last summer. It's a game of chicken, till Obama says, 'Okay, maybe we need to rethink this.'"

    But the President hasn't knuckled under yet.

    Next week can be lots of FUNNNNNNNNN!

    palmer

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  21. kli,

    you vulture, I know you are rooting for sell algos to accelerate next week so you pick up AUY at 5, heheeeeee!

    palmer

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  22. You know, there really is something to this, the market behavior on this leg down is far different than any time last year already. Let's up the ante - AUY at 1.5. Nice swing into ANV long at 2, and GS tapering off around 80 at the bottom. Turn the machines back on! - Analyze.

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